LONDON: SDX Energy Plc, the MENA-focused oil and gas company, announced that it has disposed of its 50% working interest in the North West Gemsa licence, situated in the Eastern Desert of Egypt.
The purchaser, Gulf Energy, a private Egyptian oil and gas company, has paid US$3.0 million in consideration for the Company’s interest, of which US$1.4 million has been used to discharge the Company’s remaining liabilities on the licence.
The net US$1.6 million proceeds exceeds management’s expectations for the sale of this non-core asset. The disposal is part of SDX’s ongoing focus and commitment to capital discipline and careful management of the Group’s portfolio whilst also providing additional cash to further strengthen its balance sheet.
Mark Reid, CEO of SDX, commented: Â “We are pleased to complete the sale of our interest in the North West Gemsa licence. Whilst we have presented our interest in the licence as non-core for some time, owing to its reducing production and marginal netbacks, it is a welcome outcome to be exiting the licence with a useful cash consideration and also avoiding the upcoming associated budgeted capex of approximately US$2.0 million for the year. This deal demonstrates our continued focus on portfolio and capital management, and we look forward to recycling the cash into projects that will further enhance and grow our business in the future.”
SDX is an international oil and gas exploration, production and development company, headquartered in London, United Kingdom, with a principal focus on MENA. In Egypt, SDX has a working interest in three producing assets: a 55% operated interest in the South Disouq gas field in the Nile Delta, a 50% non-operated interest in the West Gharib concession, which is located onshore in the Eastern Desert, adjacent to the Gulf of Suez, and a 12.75% non-operated interest in the South Ramadan concession offshore Gulf of Suez.
In Morocco, SDX has a 75% working interest in five development/production concessions, all situated in the Gharb Basin. The producing assets in Morocco are characterised by attractive gas prices and exceptionally low operating costs. SDX has a strong weighting of fixed price gas assets in its portfolio with low operating costs and attractive margins throughout, providing resilience in a low commodity price environment. SDX’s portfolio also includes high impact exploration opportunities in both Egypt and Morocco.